FLINT, MI -- In his first news conference since being appointed, Flint emergency financial manager Ed Kurtz said the city is "still in a financial emergency" that calls for a tax increase to avoid major cuts to city services.

Property tax revenue has sharply declined over the years, and the city's pension and other post-employment benefit obligations are an overwhelming piece of the problem, Kurtz said in his summary of the city's financial state.

"If we do nothing, the outcome would be catastrophic," Kurtz told members of the media from behind a table in the mayor's conference room. "We've cut to the bone. I don't know how we can cut much
more without significantly cutting city services."

The comments come as Flint voters will see a proposed 6-mill property tax increase on the November ballot for police and fire services.

City Administrator Michael Brown, the city's former emergency manager, has said the millage is an integral part of preserving public safety services in Flint.

But several city council members have said they won't support the millage because Flint residents have already seen water rate increases and fee hikes in recent years.

"The residents are already overtaxed enough," Councilman Delrico Loyd said at a recent city council meeting.

Kurtz said the city has a balanced budget for the current year developed by Brown's team, but said overtime costs are a concern and the city is closely monitoring its spending.

Flint still has deficits from past years that add up to about $19 million, he said. The city is still hoping for state approval to issue municipal bonds to cover the past debt, said Brown, who also attended the news conference.

Kurtz said his office is examining the possibility of an income tax increase. That option would require a change in state law and approval by Flint voters before taking effect.

Changing the income tax from 1 percent to 1.5 percent for residents and from .5 percent to .75 percent for non-residents who work in Flint would generate about $7 million a year, he said.

City Councilman Sheldon Neeley has advocated such an increase for several years, saying it would be the "best logical solution" for Flint.

"This would be a step in the positive direction," he said. "It would have been better received two and a half years ago when it was first suggested."

Kurtz said his office has reached out to state legislators about moving forward with an income tax change in the coming months.

He said he still remains hopeful about the city's financial state.

"You don't hear us talking bankruptcy," he said. "I think there is opportunity for the city to recover."

Kristin Longley can be reached at 810-429-5333. You can also follow her on Twitter @KristinLongley or subscribe on Facebook.